By William Gullotti
Buffalo, N.Y., Nov. 2 – Morgan Stanley Finance LLC sold $734,000 of callable contingent income securities due Aug. 1, 2024 tied to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 4% per year if the index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus the coupon if the index’s final level is greater than or equal to its coupon threshold.
If the index finishes below its coupon threshold but at or above its 65% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the index from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
|
| Underlying index: | S&P 500 index
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| Amount: | $734,000
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| Maturity: | Aug. 1, 2024
|
| Coupon: | 4% per year, payable quarterly if underlying index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus coupon if index finishes at or above coupon threshold; if index finishes below coupon threshold but at or above downside threshold, par; otherwise, investors will lose 1% for every 1% of index decline from its initial level
|
| Call option: | At par on any quarterly observation date
|
| Initial level: | 4,401.46
|
| Coupon threshold level: | 3,081.022; 70% of initial levels
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| Downside threshold level: | 2,860.949; 65% of initial levels
|
| Pricing date: | July 27
|
| Settlement date: | July 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1%
|
| Cusip: | 61773FGC1
|
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